NHPC Limited (NHPC) AI Stock Analysis

• Market Cap: ₹802.00B
• Dividend Yield: 2.39%
• Average Volume (3M): 602.61K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.30
• Revenue Growth: 13.90%
• EPS Growth: -15.41%
• Country: IN
• Employees: 4,461
• Sector: Utilities
• Sector Strength: 76
• Industry: Renewable Utilities
• EPS (TTM): 1.11
• Shares Outstanding: 10,045,034,000
• 10 Day Avg. Volume: 628,865
• 30 Day Avg. Volume: 602,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹82.00
• Price Target Upside: 2.71% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 62 Neutral
• Price Target: ₹89.00 ▲(11.47% Upside)

NHPC Limited's overall stock score is primarily influenced by its strong financial performance, despite challenges in cash flow management and rising leverage. Technical indicators suggest a bearish trend, and the stock's valuation appears high relative to its earnings, which further impacts the score. The absence of significant earnings call insights or corporate events leaves the financial and technical aspects as the main drivers of the score.

NHPC Limited Business Overview & Revenue Model

Company Description

NHPC Limited (NHPC) is an Indian government-owned corporation that specializes in the generation of electricity through hydroelectric power plants. Established in 1975, NHPC is one of the largest organizations in the field of hydropower development in India. It operates across various sectors, primarily focused on the electricity sector, including the design, construction, and operation of hydroelectric projects. NHPC is committed to providing sustainable energy solutions and has expanded its operations to include solar and wind energy projects, reflecting its dedication to renewable energy sources.

How the Company Makes Money

NHPC Limited generates revenue primarily through the sale of electricity produced by its hydroelectric power projects. The company operates numerous hydropower stations across India, which contribute significantly to its revenue stream. Additionally, NHPC earns income from the sale of renewable energy certificates and carbon credits, as well as from its ventures in solar and wind energy projects. The company often enters into long-term power purchase agreements (PPAs) with state electricity boards and other utilities, ensuring a stable and predictable revenue flow. Key factors contributing to NHPC's earnings include government support for renewable energy initiatives, strategic location of its hydroelectric projects, and its expertise in project management and execution in the power sector.

NHPC Limited Financial Statement Overview

Summary

NHPC Limited demonstrates strong gross profitability and operational efficiency, but faces challenges with declining net margins and inconsistent revenue growth. The balance sheet remains robust with significant equity, though rising debt levels could increase financial risk. Cash flow management is a concern, with negative free cash flow raising liquidity questions. Overall, the company is well-positioned but must address its leverage and cash flow issues to enhance financial stability.

Income Statement

The company exhibits a solid gross profit margin consistently above 90%, indicating effective cost management. However, net profit margin has been declining, dropping from 36.3% in 2023 to 29.0% in 2025. Revenue growth has been inconsistent, with a 7.2% increase in 2024, followed by a 2.6% decrease in 2025. The EBIT margin has increased over the years, showcasing improved operational efficiency, but the EBITDA margin has shown some volatility.

Balance Sheet

NHPC Limited maintains a strong equity base, with an equity ratio of 38.6% in 2025. The debt-to-equity ratio has increased, reaching 1.05 in 2025, indicating rising leverage which could pose risks. Return on equity has remained stable around 7.6%, reflecting steady profitability relative to equity.

Cash Flow

The company faces challenges in free cash flow management, as evidenced by the significant negative free cash flow in 2025. The operating cash flow to net income ratio is strong, indicating healthy cash generation. However, the free cash flow to net income ratio has turned negative, highlighting potential liquidity concerns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	103.80B	103.80B	96.32B	93.53B	82.79B	94.90B
Gross Profit	89.42B	53.55B	88.14B	55.32B	78.74B	44.03B
EBITDA	64.11B	59.29B	62.51B	68.62B	60.89B	61.96B
Net Income	30.16B	30.07B	35.96B	39.03B	35.24B	32.72B
Balance Sheet
Total Assets	1.03T	1.03T	932.95B	852.08B	772.85B	731.57B
Cash, Cash Equivalents and Short-Term Investments	27.51B	27.51B	36.35B	37.87B	17.28B	21.44B
Total Debt	415.74B	415.74B	345.78B	315.57B	260.96B	253.82B
Total Liabilities	575.15B	575.15B	494.03B	443.73B	396.89B	372.38B
Stockholders Equity	396.68B	396.68B	387.02B	368.99B	349.21B	330.90B
Cash Flow
Free Cash Flow	0.00	-38.25B	-596.40M	-2.68B	14.57B	30.91B
Operating Cash Flow	0.00	50.26B	69.38B	46.92B	64.72B	50.73B
Investing Cash Flow	0.00	-75.50B	-59.68B	-42.46B	-49.66B	-15.30B
Financing Cash Flow	0.00	19.04B	-5.81B	-7.96B	-6.38B	-31.38B

NHPC Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 79.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NHPC, the sentiment is Negative. The current price of 79.84 is below the 20-day moving average (MA) of 82.56, below the 50-day MA of 84.18, and below the 200-day MA of 81.40, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 37.06 is Neutral, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NHPC.

NHPC Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	71 Outperform	₹639.60B	23.19		1.48%	-2.95%	16.18%
POWERGRID	68 Neutral	₹2.60T	17.13		3.22%	0.40%	-1.73%
Sector *	67 Neutral	$17.66B	18.13	5.33%	3.62%	7.33%	12.21%
NHPC	62 Neutral	₹802.00B	26.22		2.39%	13.90%	-15.41%
GVT&D	62 Neutral	₹688.79B	90.04		0.10%	36.83%	166.22%
TATAPOWER	62 Neutral	₹1.21T	29.75		0.59%	4.23%	9.91%
SJVN	61 Neutral	₹390.03B	56.37		1.81%	12.40%	-30.59%

NHPC Limited Corporate Events

NHPC Completes Trial Runs for Parbati-II Hydroelectric Project Units

NHPC Limited has successfully completed the trial run of Unit#4 of the Parbati-II Hydroelectric Project in Himachal Pradesh, marking the completion of trial runs for all four units of the project, each with a capacity of 200 MW. With the commercial operation of the first three units already declared, the completion of Unit#4’s trial run signifies a major milestone in the project’s development, enhancing NHPC’s operational capacity and reinforcing its position in the renewable energy sector.